DSD is the digital format that is used in SACD digital srorage.
Here is a link to some Sony info about SACD/DSD:
http://www.sel.sony.com/SEL/consumer/dsd/dsd.pdf If it is true that your DVD player does not convert PCM to DSD for CD playback, this fact alone would not be a sufficient cause for the sound of CDs to sound bad.
There are PLENTY (probably most) of CD players that have nothing to do with DSD and yet manage to sound excellent, even musical when playing CDs.
Paul
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the 1derful1
[This message has been edited by Paul J. Stiles (edited May 24, 2003).]